They can invest up to $10 billion
Qualified Foreign Investors (QFIs) investment could be allowed in India, said a Government official but to a limit of $10 billion. SEBI is likely to issue necessary notification regarding this by August 1.
Thomas Mathew, Joint Secretary (Capital markets) in the Finance Ministry reportedly said that QFIs but not FIIs can invest in domestic funds through unit confirmation receipts or depository participant route. QFIs could be individuals and bodies, including pension funds, and cumulatively they can invest up to $ 10 billion (about Rs 45,000 crore).
SEBI would regulate the investment made by these routes and only KYC (know-your-customer) compliant retail foreign investors would be allowed to invest. The move follows the announcement of Finance Minister Pranab Mukherjee on the issue in the last Budget.
